Which ONE of the following statements is true?
A) Zero coupon bonds have no coupon payments over its life and only offer a single payment at maturity.
B) Zero coupon bonds sell well below their face value (at a deep discount) because they offer no coupons.
C) The most frequent and regular issuer of zero coupon securities is the U.S. Treasury Department.
D) All of the above are true.
Answer: D
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FIN202 Chapter 8
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